Palace says Rappler “cannot escape wrath” of law

MALACAÑANG on Monday, November 12, defended the move of the Department of Justice (DOJ) to indict the holding firm of online news outlet Rappler for tax evasion over its failure to declare accurate information in its 2015 tax returns.

Presidential Spokesperson Salvador Panelo said there was “probable cause” to lodge tax evasion case against Rappler Holdings Corporation (RHC).

“The issue simply is: Has Rappler violated the law? The Department of Justice, has found probable cause hence a case was filed against the media outlet,” the Palace official said in a statement.

Panelo said the latest ruling against Rappler was merely grounded on the DOJ’S legal findings.

He emphasized that Rappler, which violates the law, “cannot escape the wrath” of the Philippine law’s punishment.

“In the Duterte administration, obedience to the law is not, and cannot be an option. No one is above the law. Everyone or every entity is accountable for every transgression of the law,” Panelo said.

“No one is exempted, rich or poor, powerful or weak. Friendship, fraternal and political ties, as well as blood relationship do not matter to this President. If you violate the law, then you cannot escape the wrath of its punishment. Dura lex sed lex, the law may be harsh but it is the law,” he added.

In a resolution dated October 2, Assistant State Prosecutor Zenamar Machacon-caparros upheld

the Bureau of Internal Revenue’s (BIR) complaint against RHC and its president, Maria Ressa, for “willful attempt to evade or defeat tax and willful failure to supply correct and accurate information under Sections 254 and 255, respectively, of the Tax Code.”

Section 254 of the Tax Code imposes fines of P30,000 to P100,000 and imprisonment of two to four years against an individual who deliberately attempts to evade or defeat tax.

Section 255 of the Tax Code, on the other hand, penalizes acts like failure to file tax return or failure to supply correct and accurate information, with a fine of not less than P10,000 and imprisonment of one to 10 years.

Caparros also found RHC independent certified public accountant Noel Baladiang liable for having certified the financial statements of RHC despite its non-disclosure of its purchase of Rappler Incorporated’s shares.

In March, the BIR filed a complaint, accusing RHC of not paying P133.84 million in income and value added taxes in connection with the sale of P181.6 million worth of Philippine Depositary Receipts (PDRS) to foreign entitites Omidyar Network Find LLC and NBM Rappler LP.

The DOJ termed PDR as “a security that grants the holder the right to the delivery or sale of the underlying shares of stock.”

The Justice department’s resolution to indict RHC comes 10 months after the Securities and Exchange Commission (SEC) revoked the certificate of incorporation of Rappler, which has persistently released articles critical of the Duterte administration.

In January, the SEC claimed that Rappler violated the foreign ownership restrictions on mass media entities when it accepted more than $1 million worth of donations from Omidyar./ Sunstar Philippines